The Collapse of Bitconnect

After months and months of warnings about Ponzi schemes and frauds such as OneCoin, Bitconnect and similar, one of them finally came to an end.

On their blog titled “Changes coming for the Bitconnect system – Halt of lending and exchange platform” – published on the main Bitconnect website, the company said that they are shutting down their landing and trading platform. After that, the website crashed.

The famous Bitconnect website will from now on operate only as a wallet service, and for news and educational purposes. People who want to continue investing in it can store their BBC coins, which are still available on other markets, on the Bitconnet wallet. After this statement, however, investors are few and far in between which consequently led to the tremendous decline in price of $10 per coin, which is more than a 95%+ value drop from last week’s price.

The lending operations shut down immediately after the statement with the release of all outstanding loans, while the exchange platform will be closed 5 days from the announcement. Bitconnect says that they will transfer investor’s lending wallet balance to the Bitconnect wallets balance at 363.62 USD per coin – a calculation based on the average of the past 15 days of the closing price on CoinMarketCap.

Bitconnet blames bad rumors and the media for its demise, which resulted in doubts and suspicions around their platform. Their business involved in large part a so-called “Referral program” which often points to pyramid schemes. In addition to such rumors, Bitconnect also blames warning letters from regulators of Texas and North Carolina as well as the recent DDoS attacks on their platform that made it extremely unstable and caused panic among investors.

Bitconnect said this isn’t the end of the community, merely the shuttering of some of its current services. That doesn’t mean Bitconnect won’t come up with new services soon. Their new ICO is closer than one might think – the new “revolutionary” platform called BitconnectX features a new coin, called the BCCX coin, which differs from BCC only in color.

We certainly recommend that you do your own research. Explore, read and ask. Although we do not provide investment advice, we’ll be happy to point out what we consider to be frauds and why.